7 Tested Ways to Consider When Buying a House and Lot You Want to Call Your Home

By:  Gilbert M. Forbes
DepEd Quezon, CALABARZON

Everybody is excited of owning a house and lot.  But what if suddenly, your excitement turns into a disaster?  This usually happens when ones expectation to the property and the community falls below the perceived and even expected standards.  But these can be prevented if the following tips shall be considered.

1.  Long Term Goal and Income.  Consider your purpose and alternatives.  If you’re currently renting a house and the amount of rent is just enough to pay for the monthly installment of a mortgaged house and lot and the distance difference from the work place as compared to the property you are renting is manageable, you can go for it.  If not, and there are other alternatives, think twice.  You may still need time and possibly is advisable not to venture at having one.  Remember, a house and lot as financial adviser experts are saying will never be an investment unless it creates passive income or once it is sold and created reasonable profit.  You should also consider your current monthly income and your budget.  Should it eat up a sizeable portion of your income and your ability to save for both emergencies and future needs, you should consider post phoning it.  If it will result in over-stretching your budget, you might be having trouble and problems in the future, the worst-case scenario, your property after sometime got foreclosed.

2.      Payment scheme and interest rates.  Don’t be fooled by zero equity and graduated monthly installment schemes because you’ll end up paying more than expected in the long run.  Before getting a real state property like a residential unit, make sure that you have disposable cash or have savings enough to pay for the equity as well as emergency funds to pay for the monthly installments.

Most of us could only afford mass housing units.
(photo courtesy of google search)

Avoid credits e.g., issuing post dated checks for a year on a monthly basis or a cash loan to pay for your equity because it may over-stretched your ability to pay in the future.  This may result in default of payments and the worst case scenario, foreclosure of the property.  Instead of having a graduated installment, choose the fixed monthly installment plan from the very start of the paying period or years.  It will help you see the reduction in your principal, as such, lesser interest payments in the long term.

3.      Developers track record.  You should consider having a background check on the developer.  How long have they been in the business and what kind of social responsibility do they carry.  Don’t be amazed by their catchy marketing phrase, strategies and unresistable pricing and promos.  Consider having a research investigation on their numerous projects.  What are the feedbacks among the existing owners in those projects?  Are they satisfied of how their property turned out to be?  You could also consider the turn-over among their agents and employees plus the working relationships and satisfaction levels among their laborers.  Be reminded of fly by night developers who are after the profit, and of course your money, nothing more nothing less.

4.      Quality and workmanships.  Affordability of the unit should not sacrifice quality and workmanships.  All the specifications in the building plan should have been carefully followed.  Watch out for these particularly on low-end or mass housing units, even the high end ones for corrupt practices is a common place, among the laborers, foremen and project engineers either with the direct or indirect knowledge of the developers.  This usually happens when the workers are underpaid and their privileges are cut short or simply don’t exists at all.  When checking sample units and most importantly the unit you are planning to purchase, bring along with you persons who if not an expert is knowledgeable enough in building and construction who can tell you if the property is worth enough the amount of money you’re going to pay.  Also remember that with the advent of strong typhoons that are now becoming ordinary, it's resistance to this should also be one of the primary consideration.

5.      Location of the property or the subdivision.  The location should not be too far from the urban center.  If you reside in the city, except NCR and other highly urbanized cities in the country, it should be within 5-10 kilometer zone from schools, universities, hospitals, malls, government and business centers.  It should be strategically located that possible commercial growth is happening in 5-10 years as the city center gets crowded and some of the business operations get transferred to the suburbs or areas outside the city.  It will contribute much to the expected increase value of your property.

6.      After sales service and warranty.  Be sure, that after sales service and warranty is clearly stated in the contract.  Based on experience, one year warranty is no good, but 2-3 years is better just in time that construction defects may come out.  If your developer don’t offer it, then you may opt to look for other developers.  There could be better offers than what they can give.

7.      Residents institutional culture, values and orientation.  If the subdivision is no longer new, lets say, three years or more and already has an organized home owners association, consider how rules are implemented and are getting followed.  Consider small bits of traits that should exist in a planned neighborhood being a subdivision perse, e.g., a.) pathwalks, are they not occupied for personal utilization of home owners such extension of their sari-sari stores, talipapa, plants, dog house, car park, etc;   b.) what about garbages and presence of litters particularly in vacant lots;  c.) presence of stray dogs and cats.  The given samples are tests of their values and character.  If you can take it, then go on, if not, find another one or better just stay where you presently are to avoid head aches in the future.

There’s really much pleasure and joy in finally having your dream house that you can call a home of your own.  But owning one don’t merely come with a price.

(The writer has been a home-owner of a mass housing unit for almost eight years now.  He has been a member of their association's election committee since he resided on his unit in 2009 as such have been pretty much aware of what is going on.)